According to Article 211 of the Company Law of the PRC, if a company voluntarily suspends operations for more than 6 consecutive months after opening, its business license may be revoked by the registration authority. Such provision is really unfriendly to companies that are temporarily in financial difficulties and unable to operate normally, but do not intend to close down.
A foreign invested enterprise (FIE) in China, normally registered as a limited liability company, must open a capital account to receive capital contribution from its foreign investors. Once the business license of the FIE is obtained, it is required to apply for and complete a foreign direct investment registration with the local branch of the State Administration of Foreign Exchange through its opening bank before it is allowed to open a capital account.
Recently, the Ministry of Culture and Tourism of the PRC released a Circular on Adjusting Approval Conditions for Entertainment Venues and Internet Access Locations, which allows foreign investors to set up wholly foreign owned entertainment venues in China’s mainland.According to the foregoing Circular, foreign investors, investors from Hong Kong Special Administrative Region
According to the Civil Code of the PRC, the legal representative of a legal person refers to the person in charge who conducts civil activities on behalf of the legal person in accordance with the provisions of laws or the bylaws of the legal person. The legal consequences of civil activities conducted by the legal representative in the name of the legal person shall be assumed by the legal person.
The most basic form of foreign business presence in China is the Resident Representative Office (RO). A China Representative Office provides a permanent base from which its resident personnel may conduct non-profit business activities related to foreign enterprises. As a practical matter, it is desirable, and in most cases necessary, to establish a formal Representative Office for a foreign company to do the following in China
According to the Company Law of the PRC, a limited liability company shall have at least one shareholder, one executive director, one supervisor, one general manager and one legal representative. The primary powers and duties of those key roles are set forth in the Company Law. The details are as follows:
According to the current Company Law of the PRC, the registered capital of a Chinese limited company is the capital or shares subscribed by all the shareholders. The liability of the shareholder of a limited liability company is limited to the amount of its subscribed capital contribution, while the liability of the shareholder of a joint‑stock limited company is limited to the nominal value of its subscribed shares.
Wholly Foreign Owned Enterprise (WFOE), is a limited liability company, the establishment of which is governed both by the Company Law of PRC and Foreign Investment Law of the PRC. A WFOE can engage itself in approved business activities and issue tax invoices on its own. It is a corporation and a tax resident. All shareholders of WFOE should not be Chinese nationals.
The Resident Representative Offices of Foreign Enterprise (hereinafter referred to as “RO”), which refer to an office established in China by a foreign enterprise to engage in non-profit activities related to the business of the foreign enterprise in accordance with relevant regulations. RO does not have legal personality.
First, investors need to lease café operating premises before starting the registration process. According to experience, the site selection should avoid the residential building area, and choose a place with water supply, power supply, ventilation, and smoke exhaust as sufficient as possible. In order to avoid being rejected when applying for business license or other special license